U.S. Pat. No. 8,036,788 discloses a system and method for monitoring the condition of a vehicle. The system and method includes a communication unit arranged to interface with a wireless communications network, at least one sensor for monitoring at least one component or subsystem of the vehicle and which is coupled to the communications unit, and a remote site connected to the wireless communications network and arranged to receive diagnostic or prognostic messages from the vehicle with the transmission initiated therefrom. A diagnostic module may be provided, included or coupled to the sensor(s) and directs the communications unit to transmit a message to the remote site upon determining an actual and/or potential failure of a component or subsystem.
Vehicle or loan companies, e.g. Ford Credit, may offer gap insurance and wear-care insurance to the retail and lease consumers. Vehicle companies may offer programs to reduce customer liability for potential excess wear and use charges at the end of a lease. When a dealership customer turns their vehicle in at the end of the lease, excessive wear on the vehicle may cause the company to charge customers a premium. Some programs, such as Ford Motor Credit's WearCare program, gives customers greater control over potential lease-end charges for vehicle wear and tear that may occur beyond normal everyday use, which includes dents, scratches, paint damage, carpet stains and tire wear (tire tread depth). WearCare provides for a waiver of a certain dollar amount of liability in chargeable damages related to excess vehicle wear and use. WearCare is available for a monthly rate on certain leases. There is no lessee deductible, and WearCare may be canceled by the customer at any time during the original term of the lease.
For those profitable leasing and insurance programs, it may become important to estimate the residual value of vehicles more precisely, especially for luxury vehicles. Besides marketing information (e.g. demand for used vehicles and supply, economy), prediction of the condition of the leased vehicle fleet at lease termination is critical to anticipate vehicle residual values. Automakers currently use end of lease third party inspection to determine the excess wear & use, and then determine the residual value of a vehicle after leasing at the beginning of the leasing in the leasing contracts. The lessor absorbs most of the risk due to wear and tear, whereas the OEM assumes the risk of changing markets for used vehicles. However, the means of inspection are to some degree arbitrary and based only on vehicle condition that can be readily observed. Therefore the inspection may lack credibility for some customers.
Understanding the vehicle condition precisely at the end of the lease could help determine the residual value of the vehicle after leasing, understand the insurance to know for a potential payment due to the wear and tear of a vehicle during a lease, determine monthly premiums based on the customer history, driving behaviors, road conditions, weather conditions, maintenance performed, and vehicle conditions. This may also allow a party to offer different lease pricing dynamically for the term of the lease. Customers may also be able to determine if they can use “Wear Care” or gap insurance. Other embodiments may also support variable rate property insurance with a savings component and analysis of sinking funds intended to replace vehicles at end of life. Automakers may also develop a vehicle strategy to determine an ideal demographics to offer the leasing and insurance products, and retain the customers to lease again even before the leasing is ending (identify who should be involved in an early-bird program). Additionally, when vehicles are completed from their lease period, they may become a CPO (certified pre-owned vehicles). Automakers can identify the value (price) of individual CPO vehicles based on usage.